|Bid||54.60 x 800|
|Ask||54.99 x 1400|
|Day's Range||54.47 - 56.94|
|52 Week Range||33.83 - 65.22|
|Beta (3Y Monthly)||2.26|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 23, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||2.00 (3.55%)|
|1y Target Est||58.90|
Data storage giant Western Digital, private-label food producer TreeHouse Foods, and tire manufacturer Goodyear are vulnerable to an attack from activist investors, according to shareholder-activism intelligence firm Activist Insight.
At its heart, the argument over Micron Technology (NASDAQ:MU) is a battle over how to value a cyclical stock. It's not an easy task. In a matter of quarters, the MU stock price went from being absurdly cheap -- Micron stock traded at less than 4x earnings at points last year -- to questionably expensive. Fiscal 2020 consensus EPS is just $2.53, implying a 17.5x forward P/E that's not all that attractive in the context of the semiconductor sector.Source: Charles Knowles / Shutterstock.com Even Wall Street can't make up its mind. As Barron's noted last week, analyst targets for the MU stock price range from $28 to $90. It's a company that earned $12+ in adjusted EPS in fiscal 2018, posted a $1 per share loss as recently as FY12, and is expected to see a two-year, approximately 80% decline in EPS in FY20. * 10 Marijuana Stocks That Could See 100% Gains, If Not More In terms of that argument, I wrote recently that I lean toward the bearish side. The recent rally in Micron stock looks ripe for profit-taking. Earnings may not be set to rebound any time soon. And I thought the Q3 report that sent the MU stock price skyrocketing was much weaker than headlines suggested.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCyclical arguments aside, however, there's a risk to MU shares that might not be fully appreciated at the moment. Micron is exposed to the U.S.-China trade war in a way that goes beyond the standard macro exposure of most semiconductor stocks. News on that front thus is likely to create volatility in Micron stock in the near term. And if the news winds up being as bad as it appears, it could send MU shares back toward recent lows. The Huawei Problem for Micron StockThe Trump Administration has made a clear target of Chinese telecom equipment manufacturer Huawei. The White House effectively blacklisted the company earlier this year, citing security concerns. President Donald Trump himself said this week that he wasn't interested in allowing Huawei "to do business at all" with American companies, though the federal government soon after gave Huawei another 90-day extension.Huawei's tenuous status has been an issue for tech stocks, and particularly semiconductor stocks, for some time. Companies like Broadcom (NASDAQ:AVGO), Qorvo (NASDAQ:QRVO), and Intel (NASDAQ:INTC) all have seen revenue hits from ceasing or moderating sales to the networking giant. Micron's rival Western Digital (NASDAQ:WDC) announced in June that it had stopped doing business with the Chinese company altogether.For Micron, Huawei is a key customer. Per its 10-Q, 13% of revenue for the first three quarters of fiscal 2019 came from Huawei. And that's with lower-than-expected revenue so far this year to begin with. On its Q3 conference call, the company cited a $200 million impact to revenue in the quarter. Q4 guidance -- which was disappointing relative to expectations -- also took a hit. And the company wrote down $40 million in Huawei-related inventory. Lower Earnings Mean a Lower MU Stock PriceThe problem for Micron is that 13% of revenue doesn't necessarily mean 13% of profits. One only need look at YTD results to see that lower sales have a huge impact on earnings.Through the first three quarters, revenue is down over 15%. Adjusted EPS has declined 32% with a lower share count.Admittedly, lower DRAM and NAND memory pricing is a big factor. But losing 13% of revenue off roughly similar expense bases in R&D and G&A tends to depress margins and lead to amplified reductions in profit.In other words, this is a big risk for Micron stock. How Does This Play Out?To be fair, a permanent Huawei blacklist doesn't necessarily mean Micron's revenue will fall by 13%. As CEO Sanjay Malhotra noted on the Q3 call, Micron supplies Huawei rivals as well (presumably including Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC). Those rivals would take market share ceded by Huawei -- and add to their purchases of memory from Micron.But it's still unclear that European countries, in particular, are going to follow the U.S. lead in banning the Chinese equipment maker. There will be some erosion if the U.S. moves forward in preventing its companies from selling to that company.It's also possible that, at some point, the ban will be lifted. The administration could be using Huawei as a bargaining chip. A broader trade war deal could include accommodation from Huawei, and any sort of resolution likely would move chip stocks, including Micron stock, higher.But such a resolution seems a long way off at this point. In the meantime, Micron earnings are likely to decline, and the MU stock price may well follow suit. Between cyclical risk and political risk, there are plenty of reasons to stay on the sidelines here. Even bulls might want to show some patience and see if geopolitical factors don't present a better entry point.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Mind the Huawei Risk When It Comes to the MU Stock Price appeared first on InvestorPlace.
Western Digital (WDC) launches five new high storage-capable gaming drives, featuring high-performance capabilities to provide users with immersive gaming experience.
Nvidia (NASDAQ:NVDA) stock was a Wall Street darling not too long ago. But lately it has lost its shine and now cannot hold a rally long enough to flip this massive down slide that started last year. Year-to-date, Nvidia stock still lags the chip champ Advanced Micro Devices (NASDAQ:AMD) by more than half.Source: Shutterstock On its way up to $290 per share, NVDA rode the Bitcoin craze up fast. But as the Bitcoin mining headlines faded, the Nvidia stock price fell off a cliff. Ironically, at the highs of almost $300 per share the consensus among experts was that NVDA was a must-buy. Now that it's a lot cheaper with almost all the same fundamentals that supported the rally, it's hard to find any fans of it on Wall Street.Fundamentally speaking NVDA stock is not cheap at 45 price-to-earnings ratio. But owning it at these levels for the long term is not likely to be a giant debacle. This is especially true for patient investors. The company is well set to capitalize on several segments for the next decade of tech.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Marijuana Stocks to Buy Now Shorter-term, it is important to pay attention to what the clues in the Nvidia stock chart suggest. There are definite levels that stand out from the latest price action. What You Should Expect From NVDA NowTraders reacted positively to the earnings report this week. NVDA spiked 15% and is now trying to hold the rally in order to extend it. It is important for it to hold higher-lows and break out from $180 per share. If the bulls are able to do this, Nvidia stock should trigger a bullish cup-and-handle breakout to target $200 per share or higher.This won't be easy and there will be resistance, first at the neckline, then at $194 per share. These two levels have been significant prior failure zones. So the onus is on the NVDA stock bulls to prove that they can hold the trend of higher-lows in order to attack the neckline that has so far proven so elusive.For that to happen, Nvidia will need the help of the general markets. This week is another potentially pivotal week for stocks, as today we get the Federal Reserve minutes from their last meeting. And on Friday we hear from the Chairman himself. Recently Fed head Jerome Powell's effect on the markets has been very violent. So coming into the event on Friday the NVDA trade is somewhat binary. Short term, it has more gambling than investing in it.The fear index -- the CBOE Volatility Index (INDEXCBOE:VIX) -- is still elevated but nowhere near critical levels. Only days ago it was pushing $25 per share and now it's below $20. So there is no obvious ramp up in fear, even as equities hang this close to all-time highs in the S&P 500 for example. * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio In other words, this market is indeed climbing the wall of worry. And with a little bit of luck, the rally continues so that Nvidia stock can actually breakout of this funk and recover some old glory.Depending on the portfolio, it is okay to hold or buy NVDA here in anticipation of the breakout as long as investors place proper stops below.Alternatively, instead of buying upside hope, we can sell downside risk into the Nvidia stock price. For example, you can sell the Dec $130 put and collect $2 per contract to open. This way you don't even need a rally to profit as long as Nvidia stock stays above that level, you are a 100% winner. The breakeven from that trade would be at $128 per share. Below it, you would own the shares and accrue losses.Regardless of what you decide to do, you should do it in tranches. This leaves room for adjusting the risk if and when it's needed.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Nvidia Stock Finally Has What It Takes to Break Out of $200 Again appeared first on InvestorPlace.
Company Showcases Expansive Lineup of Certified Solutions Supporting VMware ESXi™, vSphere® and vSAN™-Powered Hyperconverged Infrastructures to Optimize Performance for Mission-Cri
(GAMESCOM) – Western Digital Corp. (WDC), today introduced a portfolio of external storage solutions for PC and console gamers to enable access to new engaging experiences and capture more winning gameplay, without maxing out their gaming storage. The solutions include a first-to-industry SuperSpeed USB (20Gb/s), USB 3.2 gen 2x2 port in a game drive. Building on top-tier performance of the WD_Black™ SN750 NVMe™ SSD currently on the market, the five new solutions have been thoughtfully designed and purpose-built to address these storage challenges, all based on recognized Western Digital quality and reliability.
U.S. sanctions against Chinese tech giant Huawei were suspended through Monday, Aug. 19. What the Trump administration does next has big implications.
Shares of Micron (NASDAQ:MU) have been volatile, which is no surprise given the current landscape of the stock market right now. Take virtually any news headline and it's easy to see its impact on the stock market.Source: Shutterstock The yield curve, slowing national economies like Germany, the market and currency implosion in Argentina and of course, the trade war, can all impact stocks. But the trade war is the big one for Micron stock because the conflict has a huge impact on semiconductor companies.In the case of MU, sometimes the impact of the conflict is direct and other times it's indirect. But if MU's semi, memory and chip peers -- like Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX), Advanced Micro Devices (NASDAQ:AMD) and Western Digital (NASDAQ:WDC) -- are struggling, there's a good chance that MU stock will struggle too.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, supply/demand issues have weighed on memory manufacturers like MU as well. That's why we've slowly seen estimates for MU's top and bottom lines dwindle over the last nine months. * 10 Cheap Dividend Stocks to Load Up On There has been optimism that MU and its peers have reached a bottom. If that's the case, it would be quite a powerful positive catalyst for MU stock price. Valuing Micron StockThe one thing investors have always pounded the table on when it comes to MU is its low valuation. But that low valuation is there for a reason; specifically, MU operates in a boom-bust business cycle. When the climate is right, its sales and earnings surge. But when demand dries up or supply builds too much (or both), its earnings and revenue are hammered.No one wants to pay an average price=earnings multiple for that, let alone a premium. Some analysts, however, have said that if Micron stock traded with the same multiple as the S&P 500, then MU stock price would be much higher than it is.But modeling a price target on a stock based on the assumption that investors will dramatically raise its valuation is a fool's game. That doesn't happen often and when it does come to fruition, there's no way of knowing what the final valuation will be. Investors really need to analyze each stock based on its own merit and history.In Micron's case, it has a low valuation, and that probably won't change unless a modification of its underlying business alters its outlook. Analysts, on average, expect MU to generate earnings per share of $6.22 this year, leaving Micron valued at 6.75 times the average EPS estimate.However, the average EPS estimate for 2020 is just $2.50. If the average estimates prove correct, MU's EPS will sink 60% year-over-year in 2020, and MU stock is trading at 16.8 times its 2020 EPS. Moreover, the average estimates call for MU's sales to fall 24% this year and another 15% in 2020.The average estimates for 2020 may be too bearish, but that emphasizes exactly what we're talking about: Micron's business is too volatile to command a higher valuation. Trading MU Stock Click to EnlargeThe wild swings of MU's earnings and revenue are too much for many investors. For those who do want to buy Micron stock, perhaps it's best to accumulate it when the news has worsened considerably and sell the shares when it seems like blue skies for MU.On Tuesday, MU stock fired higher, briefly eclipsing $45. However, the prior resistance zone between $44 and $45 held it in check. It didn't help that Micron's 38.2% retracement level is near $44 as well, while its declining 20-day moving average was $43.11.We have been highlighting this resistance zone for months now, and there's currently a lot of resistance in this area.The rhetoric about MU is improving, but investors are still pretty cautious on the name. Luckily for the owners of Micron stock, the charts have somewhat definitive levels.Bulls either need to see Micron stock price overcome its resistance or get cheaper before buying Micron stock. Bulls who are waiting for the shares to overcome resistance should look for a close north of the $44-$45 zone. If that happens, MU stock can reach its July highs near $49.Aggressive bulls waiting for MU to get cheaper may feel confident near $41. There, MU stock price will be near the 50% retracement level and the 50-day moving average, which is trending higher. Conservative bulls may wait for a correction down into the $39 area. There it will encounter prior support from July, as well as the 200-day moving average. Further, the 61.8% retracement level near $38 should help boost MU stock.In either scenario, buyers need to use extreme caution below $38. If this level give way, MU can decline into the low- to mid-$30s.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post A Low-Risk Way to Trade Micron Stock appeared first on InvestorPlace.
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
Morgan Stanley has identified a list of tech stocks likely to be the next takeover targets as the sector dominates M&A activity this year.
(Bloomberg) -- The White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co. after Beijing said it was halting purchases of U.S. farming goods, according to people familiar with the matter.Commerce Secretary Wilbur Ross, whose department has vetted the applications to resume sales, said last week he’s received 50 requests and that a decision on them was pending. American businesses require a special license to supply goods to Huawei after the U.S. added the Chinese telecommunications giant to a trade blacklist in May over national-security concerns.The U.S. decision rattled stocks, bonds, currencies and even soybean prices around the world. Huawei suppliers Micron Technology Inc. and Western Digital Corp. declined as much as 2.2% after news of the delay in license approvals, while Qualcomm Inc., Xilinx Inc. and NeoPhotonics Corp. all fell more than 1% in after-hours trading. Huawei’s dollar bond spreads widened by 10 to 15 basis points Friday morning, while the Australian dollar and offshore yuan weakened versus the greenback and the yen gained.Trade TrucePresident Donald Trump said in late June after agreeing to a now-broken trade truce with Chinese President Xi Jinping in Japan that some restrictions on Huawei would be loosened. But that promise was contingent upon China beefing up its purchases from American farmers, which Trump has complained the country has failed to do.In the past week tensions have escalated further as Trump said he would impose a 10% tariff on $300 billion of Chinese imports as of Sept. 1 and his Treasury Department formally labeled China a currency manipulator.Still, Trump said last week there were no plans to reverse the decision he made in Japan to allow more sales by U.S. suppliers of non-sensitive products to Huawei. He said the issue of Huawei is not related to the trade talks.The White House had no immediate comment, and the Commerce Department declined to comment. Huawei also declined to comment. China’s foreign affairs and commerce ministries didn’t immediately respond to faxed requests for comment.Tech PitchTechnology companies have already made their pitch to the White House for a rapid granting of licenses that would allow them to resume some shipments of components to Huawei.The Chinese company is one of the world’s biggest purchasers of semiconductors. Continuing access to that market is crucial to the fortunes of chipmakers such as Intel Corp., Qualcomm Inc. and Broadcom Inc. who sent their chief executives to meet with Trump in July.Companies such as Xilinx Inc. and Micron have publicly said they’ve applied for licenses and called on the U.S. to allow them to resume doing business with Huawei. They argue that many of their products are easily obtainable from their overseas rivals, making a ban ineffective and also harmful to the industry that the trade dispute with China is supposed to be helping.Some U.S.-based makers of electronic components have already reported earnings and given forecasts that show the negative effects of the trade dispute.(Updates with bond spread moves in fourth paragraph.)\--With assistance from Adam Haigh and Jeran Wittenstein.To contact the reporters on this story: Jenny Leonard in Washington at email@example.com;Ian King in San Francisco at firstname.lastname@example.org;Jennifer Jacobs in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, ;Michael Shepard at email@example.com, ;Tom Giles at firstname.lastname@example.org, Sarah McGregor, Scott LanmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Western Digital Corp. (WDC) today announced that Martin Fink, executive vice president and chief technology officer, will be transitioning to retirement and moving to an advisory role with the Company. Mr. Fink will continue to report to Steve Milligan, chief executive officer, and advise Mr. Milligan and the executive team on matters relating to data center architectures, including RISC-V. Dr. Siva Sivaram, executive vice president, Silicon Technology and Manufacturing, has been appointed to the newly created role of President, Technology and Strategy, effective immediately.
Western Digital Corp. (WDC) today announced that the board of directors declared a quarterly cash dividend of $0.50 per share of common stock (the "cash dividend"). The cash dividend will be paid on October 22, 2019, to the company's stockholders of record as of October 4, 2019. The amount of future dividends under the company's dividend policy, and the declaration and payment thereof, will be based upon all relevant factors, including the company's financial position, results of operations, cash flows, capital requirements and restrictions under the company's financing documents, and shall be in compliance with applicable law.
With escalation in trade war between the world's largest economies, the semiconductor sector has been the worst hit given its significant exposure to China.
Built on Proven, Vertically Integrated In-house Architectures and 96L 3D TLC NAND, the new Ultrastar® NVMe SSDs Set a New Bar for Performance and Power Efficiency, Laying the Found